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The Performance Effect of Environmental Innovations

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Abstract

While recent literature has focused on explaining the determinants of green innovations, it is not well understood how such innovations affect performance. To analyse the relationship between green innovation and performance, new industry-level panel data were exploited: these include 12 OECD countries, the whole manufacturing sector and a period of 30 years. The results show that green inventions are U-shape related to performance. However, the turning point is quite high and hence only relevant for a few industries. This indicates that - given the current level of green promotion - market incentives alone are not sufficient to allow the green invention activities of industries to rise considerably.

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  • Christian Soltmann & Tobias Stucki & Martin Woerter, 2013. "The Performance Effect of Environmental Innovations," KOF Working papers 13-330, KOF Swiss Economic Institute, ETH Zurich.
    • Handle: RePEc:kof:wpskof:13-330
    DOI: 10.3929/ethz-a-007615265
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    References listed on IDEAS

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    1. Chiara Franco & Giovanni Marin, 2017. "The Effect of Within-Sector, Upstream and Downstream Environmental Taxes on Innovation and Productivity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(2), pages 261-291, February.

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    Keywords

    Innovation; R&D; Patents; Environment; Technological change; Performance;
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